Investors Prefer Bonds to Stocks Looking for Safety

By Unknown

Selasa, 21 Juni 2016

Investors Prefer Bonds to Stocks Looking for Safety

Investors dumped stocks and fled to the safety of bonds in the week to Jan. 6 that saw $ 2.3 trillion wiped off global stock markets and the worst opening week of the S & P 500, Bank of America / Merrill Lynch (BAML) said Friday.

Some $ 8.8 billion was drawn from stock, the largest output in 17 weeks, with redemptions mainly concentrated in US equity funds after the S & P 500 lost 4.9 percent in the first four trading days of 2016.

high quality government, municipal bond funds and investment grade have been the big winners, with some $ 3.3 billion entries. This was the highest in 11 weeks depending on data BAML, which also includes research house numbers Boston-based EPFR Global.

Investors took fright at the huge stock market volatility in the first days of the 2016 award, with developed and emerging stock markets in free fall after turmoil in the Chinese mainland markets and strong lower movement in the yuan.

over 40 percent of stocks in the benchmark S & P 500 are now 20 percent or more off their highs, the definition of a bear market. BAML has estimated that the overall loss of market capitalization to $ 2300000000000 more than four days of sale.

The benchmark emerging markets fell 6-1 down / 2 years, and is going for a weekly loss of 6.5 percent, its worst weekly performance since May 2012. Investors fired some EM equity funds of $ 500 million in the week to January 6, the 10th consecutive week of outflows.

via CNBC

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